The whole purpose of this blog has been to help readers make more money. If you have followed us since the beginning, I hope you were able to implement one or several ideas, from making money around Christmas to starting investing or creating a stream of online income.
Everyone can make a little extra money, it is not that difficult. What I hear most around is “I don’t have time” or “I don’t know where to start”. To tackle the first point, ok, you don’t have time. But how about we crunch the numbers for a second?
If you manage to earn an extra $100 every month for the next 20 years, your retirement nest egg will have… $46,500 saved! Based on the money being invested at an average 6% rate of return.
Now, if you do not save that extra $100 per month, how long will it take you to earn $46,500 in your 50s? If you make $4,000 a month, that means you will have to stay a full year longer at your job. And I am not even including taxes being taken off your paycheck or the fact that inflation will eat up a good chunk as well.
Meanwhile, making an extra $100 every month to set aside for your retirement shouldn’t take a lot of time out of your ordinary routine.
If you have a day job, working an extra hour or two per week should get you there, depending on your hourly rate. You could also try to bank your raises from now on. After all, you are living on the money you currently make, so setting aside the difference should result in no change to your daily life.
Lately, I have made money in several ways that are not usual for me. I sold my old laptop for $200. I put my empty rooms for rent on Airbnb and made around $400 in November. I even made $500 in a day taking an aggressive position in Forex trading (I usually invest over longer periods of time and look for safer, lower returns. Do not try this with money you can’t afford to lose as it is a risky endeavor).
Renting my guest rooms was hard work but if we go back to the $100 a month example, I would have made in one month enough to cover the extra retirement funding of four months.. You can do it three times a year and be done with it.
There are many, may ways you can make up those $100. Freelancing, baby-sitting other kids, selling old stuff, or building a more aggressive investment portfolio, although the latter requires initial funds.
How I started was never saying no to a job. Since my teen years, I got a wide variety of side hustles and after a few years, I found out that I preferred tutoring rather than teaching the piano for example. I was happy flipping burgers but miserable in a call center or working in sales.
After defining what worked for me, I studied my employers. When did they need more staff? Could I get an extra shift during the holidays? What was, in there eyes, a good employee? I tried to be the best I could so they would hire me when I needed more hours.
Then I got fed up and decided to work for myself, but still juggling several sources of income, to more than cover my living expenses and make sure my future was covered as well.
Making that extra $100, or even $500 a month in extra income is not that hard if you are really motivated. Dig up the archives for more money making ideas!
This post was featured on the Yakezie Carnival, Lifestyle Carnival, thank you!
charles@gettingarichlife says
$100 here or there adds up to over time. Once you start compounding at thousands you’ll be happy you did, and regret you didn’t put more in. Only problem is it seems like such a way off, that’s why people don’t save.
charles@gettingarichlife recently posted…Get Rich With Real Estate: How To Value Real Estate In Any Market
Pauline says
Having just $100 in savings and $1 in yearly interest is pretty depressing so I get why people don’t stick to it, however over a few decades it is a lot of cash.
DC @ Young Adult Money says
I’ve always been a fan of using side income to fund specific things. If you can make $100 – $1,000 in side income and are able to sustain that for years and years, you can really make a nice retirement nest egg from that alone. I think the important thing is to find a motivating factor, like retirement savings or debt payoff, and then pursue the side income with all you have.
DC @ Young Adult Money recently posted…I Was A Triple-Major in College and Where it Got Me
Pauline says
I am using extra income at the moment to fund traveling, it paid for a trip to Europe, we are going to Miami in February, so it is pretty motivating!
Paula / Afford Anything says
It’s amazing how large of a difference an extra $100 per month can make!
Paula / Afford Anything recently posted…Drugs, Your Brain, and Holiday Sales
J Rodriguez @ CNAFinance.com says
Hey Pauline, I love this post. $100 a month can really go a long way, $500 a month can build a retirement fund! Thanks for the great read…I’ll see ya around!
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Terry @EasyFinancialTips says
Love this post! I get my extra savings from freelance writing and editing papers.
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Michelle @ fitnpoor.com says
I’m starting to look around at side income. I was a music teacher for forever but lost all my students when I moved. Maybe I need to get back to that!
Michelle @ fitnpoor.com recently posted…My Biggest Little Money Mistake
Pauline says
I found new students easily with online ads, then word of mouth once you have a few. New year will be great to get some enrollment as people make it a resolution.
Moneycone says
For the creative, there are a lot of avenues to earn an extra 100! Craigslist, Amazon, eBay… Etsy if you like doing things instead of just de-cluttering!
Moneycone recently posted…10 Questions You Must Answer To Stay On Top Of Your Portfolio
Laura @ RichmondSavers.com says
It’s amazing what only $100 extra per month can do! And I agree with you, there are so many ways to make that extra income if you can get creative and think about nontraditional ways of bringing in cash.
Laura @ RichmondSavers.com recently posted…Lending Club Update December 2013
Travis @debtchronicles says
It’s important to re-evaluate how much you need for retirement periodically….through the years your lifestyle changes therefore your target lifestyle for retirement will change as well.
Travis @debtchronicles recently posted…Are Your Holiday Expectations Holding You Hostage?
Pauline says
True, as a broke student you think $2,000 in retirement will allow you to live like a prince but the reality is pretty different when you have kids in college or want to go on a cruise.
Mitch says
in 20 years $46,500 will do you nothing,
20 years ago the purchasing power of 100$ was sky high but today 100$ is nothing,
that’s just the way it is, with inflation and automation and population growth etc …
i don’t mean to be depressive i’m just saying if you wish to spare 1 hour daily for 20 years better spend it on growing a promising business something that ‘ll grow into something valuable, but working your ass hard online and struggle for few bucks is not worth it.
not mention your online income from monetizing blogs depends on the mood of Google and how they constantly change stuff and your web loses value and ppc programs gives you 0.02$ per click and stuff.
1 hour daily for 20 years.
better think large then!
Many thanks and Best wishes!
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Daisy @ Prairie Eco Thrifter says
I have quite a bit of retirement savings, considering I have a pension with work (defined benefit plan) and then I also save in my RRSP (Canadian version of a 401 (k)). Plus I have a TFSA (Canadian version of a Roth IRA). I ensure that all of my Adsense earnings goes into one of the latter two accounts.
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Emily Blake says
Thanks for the suggestions and tips and tracks sharing in the article. It is really helpful. Proper use of money or properly investing money in any business or work ,pays back to you and you have beautifully explained every aspect in a nice manner.